Going on vacation is good for us. We are happier, healthier, more relaxed, more energetic and more satisfied than if we just stay home. So it’s time to book. But what about your budget? What if you have not saved and do not have a financial buffer? Can you actually borrow money to book your vacation? And is that wise?

The question of whether a holiday loan is sensible will be answered differently by everyone. It is usually recommended to take out a loan only if there is a real investment in return, such as the purchase or renovation of a home. But what if you really need a break? Then borrowing for a vacation can be interesting. Some lenders even promote the holiday loan. Usually in the form of a personal loan.

Possible formulas

Possible formulas

A personal loan (or installment loan) is the most frequent and cheapest form. Everything is determined in advance: the loan amount, the interest, the duration and the amount that you have to pay back. After approval, the amount is simply deposited into your account.

A revolving credit is a second but more expensive option. The interest rate is variable but will be higher than with a personal loan. You must repay the loan at agreed times in accordance with the conditions, but you can use the credit again afterwards. It is therefore a money reserve that you can keep available. Withdrawing the full credit is also not mandatory.

A third option is the credit card. A credit card offers you a certain credit limit every month. In other words: you can spend a little more money if you just want to buy that one product. Or book that dream trip. A credit card is therefore an extra financial buffer, adjusted to your personal situation. You can also use a credit card as a normal bank card. You can therefore use it to withdraw money (also abroad) and make payments in both physical stores and on the internet.

A few tips

A few tips

Make sure you calculate how much extra money you need in advance. That way you can avoid borrowing too much. Opt for opting not to take out a loan but to save enough for your holiday in advance. Need a loan anyway? Then look specifically for ‘holiday loans’ and try to save interest in this way.

Compare as always with different providers. This is best done online. This not only saves you a lot of time but can also be 24 out of 7.

There are various options for calculating on the internet how much you can borrow in your situation. For this you need certain data, such as your income per month, your expenses per month, what you pay in rent and whether you already have another loan. Once you have entered this, you will receive an amount that you could borrow monthly or in total.

Other comparison sites make it possible to compare all the conditions of different lenders so that you can see at a glance what would be the most favorable.

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